The observation is that the bush died over the winter.
There were two theories posed:A1: The bush was planted in a spot that exposed it to too much cold, specifically deep frost killed the roots before they were sufficiently established.
A2: Grubs from a beetle attacked the roots during winter and killed it.
Both theories have merit since they satisfy at least half of the criteria for a scientific theory (it will be required to show this starting with the next set of examples). Also, both theories could explain the initial observation (as briefly explained above).
D1: The roots were soft and spongy
D2: No signs of larvae in the soil.
Frost Grubs Soft & Spongy Roots yes no No Larvae yes no
From this data (frost - 2, grubs - 0), it would seem that frost killed the roots.